'Fast Money' Recap: Netflix Nightmare

NEW YORK ( TheStreet) -- The markets rallied Monday on some strong earnings and a spate of deals.

The Dow Jones Industrial Average jumped 104.83, or 0.89%, to 11,913.62. The S&P 500 rose 15.94, or 1.29%, to 1254.19. The Nasdaq soared 61.98, or 2.35%, to 2699.44.

Scott Wapner, the moderator of CNBC's "Fast Money" TV show, kicked off the discussion by focusing on Netflix ( NLFX), which was down 24% in afterhours trading after reporting a loss of 810,000 U.S. subscribers in the third quarter.

For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."

3 Stocks I Saw on TV

Joe Terranova said Netflix will have to take a pause in the international markets and shift gears and spend more money on a marketing effort to stem the loss of U.S. subscribers.

Pete Najarian said there is no reason to jump into the stock with the company facing serious subscription and guidance issues.

Tim Seymour said there's nothing left for the stock. He said many investors had headed for the exits before today's earnings report. "Who cares about this name?"

Michael Pachter, an analyst with Wedbush Securities, said he never expected Netflix would guide for a loss next year. He said the company said today it is going to lose money in the first few quarters in 2012, which he took to impy that it "won't make money at all next year."

CNBC senior stocks commentator Herb Greenberg said Netflix got hammered after it changed its business model that triggered a subscription backlash and cancellations. He said the company now doesn't know what is going to happen.

Wapner noted that shares of Texas Instruments ( TXN) were up after it topped EPS estimates, even though its guidance was below Street expectations.

Najarian said Texas Instruments was not giving what the market wants. He said Intel ( INTC) was the better stock for this space.

Commenting on today's rally, Dan Greenhaus, BTIG's chief global strategist, cautioned that the prospects of a recession next year in the U.S. will weigh on the markets.

He said companies in today's market rally, companies are getting rewarded if they beat estimates, while those that missed, with the exception of Netflix, are getting punished a little less.

Terranova said portfolio managers, who are behind on their benchmarks, are chasing the market. He said the market is getting a lift from good guidances from McDonald's ( MCD) and Caterpillar ( CAT) and no hard landing in China.

Seymour said the markets were encouraged by China's PMI number and the country's low inventory of copper. He said there is "tremendous value" in the emerging markets.

Najarian said the materials have been rallying for quite awhile, especially names such as Freeport McMoRan ( FCX), U.S. Steel ( X) and Southern Copper ( SCCO).

Najarian said he still liked the global growth story, adding China still has upside.

Dennis Garman said the commodities exploded to the upside as pessimism receded to the sidelines. He China's PMI number changed his opinion, making him a buyer of steel, coal and oil.

Terranova said his favorite trades in oil were Occidental ( OXY) and Anadarko ( APC) if there are significant capital flows into the oil sector.

Shifting to the currency trade, Todd Gordon, of the Aspen Trading Group, said he sees the S&P, crude oil and Australian dollar moving higher. He said the declining dollar is sending commodities higher.

The retail stocks turned in a bullish performance today. Scott Nations noted one huge block of 14,000 calls for VF Corp ( VFC).

Kimberly Greenberger, an analyst with Morgan Stanley, said retail sales results show that consumers are still spending and department orders are solid. She said same-store sales might increase as much 3.5%.

Greenberger said she liked Nordstrom ( JWN) and Coach ( COH) because they are not ultra high-end but still have pricing power.

In the final moves, Josh Brown liked Rackspace ( RAX). Nation said the trading in Netflix was going to be messy on Tuesday. Seymour offered a pairs trade, going long on iShares MSCI Emerging Market ( EEM) and short on the SPDR S&P 500 ETF ( SPY). Terranova liked the iShares iBoxx $ High Yield Corporate Bond Fund ( HYG) on capital inflows. Najarian liked Ensco ( ESV).

-- Written by David Tong in San Francisco.

>To contact the writer of this article, click here: David Tong.

To submit a news tip, send an email to: tips@thestreet.com.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

Follow TheStreet.com on Twitter and become a fan on Facebook.

If you liked this article you might like

Tech Stocks That Look Fairly Cheap Following the Rout

Tech Stocks That Look Fairly Cheap Following the Rout

Facebook Leads Sharp Decline of FANG Stocks This Week
Why the Worst May Be Over For Facebook

Why the Worst May Be Over For Facebook

Facebook's Miserable Week Continues as Stock Nears Bear Market Territory

Facebook's Miserable Week Continues as Stock Nears Bear Market Territory

With Nothing to Buy, Everyone Sells: Cramer's 'Mad Money' Recap (Thur 3/22/18)

With Nothing to Buy, Everyone Sells: Cramer's 'Mad Money' Recap (Thur 3/22/18)